Bloomberg Businessweek
Episode: "Babbel Makes a Splash in AI-Assisted Language Learning"
Date: September 17, 2025
Hosts: Carol Massar & Tim Stenovec
Guest: Tim Allen, CEO of Babbel
Overview
This episode explores the intersection of artificial intelligence and language learning, focusing on how Babbel—under new CEO Tim Allen—is enhancing language acquisition using AI tools amid rapid technological advancements from giants like Apple and Alphabet. The discussion covers the evolving competitive landscape, Babbel’s approach to AI, its business model, and the enduring value of genuine language learning experiences in an age of automated translation.
Key Discussion Points & Insights
1. The Rising Tide of Real-Time Translation Technology
[01:46-03:35]
- Apple’s introduction of live translation on AirPods is seen as a transformative but not replacement tech.
- Tim Stenovec: “It automatically translates words that are spoken to the wearer... We live in the future, Carol.”
- Carol Massar: “If you don’t have a language, sometimes you feel lost in a country. But this really kind of makes it very easy to communicate with other folks.”
- Duolingo’s stock reacted to Apple’s demo, highlighting how the market is closely watching AI-driven translation.
Tim Allen’s Take
- “Language learning is the oldest software known to man, so it’s not going anywhere.” ([02:57])
- Real-time translation increases awareness and interest in languages but doesn’t suppress the desire to truly learn and belong in a language.
2. Will AI Replace Language Learning?
[03:35-04:59]
- While technology can make translation seamless, Allen argues the desire to live and breathe in a foreign language remains irreplaceable.
- “Short of a neural implant, people are going to always be learning languages... people will always want to learn and live inside of a language themselves.” (Tim Allen, [03:54])
- Babbel’s new AI product, Babbel Speak, blends AI coaching with pedagogy to enhance but not supplant human-led language acquisition.
3. AI as a Competitive Threat & Catalyst
[04:59-06:47]
- Introduction of powerful LLMs (e.g., GPT-5) facilitates rapid creation of language apps, but Allen sees limitations.
- “People want to know they have a real lesson plan, that they have really the transmission of the language in a way that’s going to adapt to them.” ([05:36])
- AI enables hyper-personalization and faster content development, but trusted brands with deep pedagogical roots maintain market strength.
4. Babbel’s User Growth, Stickiness, and Market Segments
[06:47-08:41]
- Babbel is experiencing strong growth, particularly in September and during New Year’s, with “millions of subscribing customers” and thousands joining daily.
- “Demand has not waned on this side of the equation.” (Tim Allen, [07:04])
- Corporate clients include over 2,000 businesses; a recent example is Inter Miami Football Club utilizing Babbel for custom team content.
Pricing Model
- Individual: Lifetime access at $199, or a subscription at $29.99/month. ([08:54])
- Allen: “If Tim, you came to the site and signed up... you could pay $199 for the lifetime. There's also discounts... then there's the monthly fee of $29.99.” ([08:54])
5. Babbel’s Focus vs. Diversification
[09:57-11:13]
- Competitors like Duolingo expand into other domains (chess, reading), but Babbel remains laser-focused on language acquisition.
- “Now our specialty is language learning... all of our linguistics, all of our teachers, all of the human centric pieces...” (Tim Allen, [10:18])
- Babbel uses gamification and AI to enhance the learning journey but doesn’t plan to diversify beyond languages.
6. AI Investment & Development at Babbel
[11:13-12:51]
- Babbel has been cash flow positive since 2011, investing heavily in engineering, AI talent, and proprietary infrastructure.
- “We have hundreds of millions of lessons completed a year. That’s very rich data to be taking into proprietary LLMs and data models...” (Tim Allen, [11:27])
- AI at Babbel enhances (not replaces) human educators: “We do use AI, but we use it with the human centric piece...” ([12:17])
7. CEO’s Personal Experience
[12:51-13:11]
- Tim Allen, who moved to Berlin for the job, is himself learning German slowly via Babbel.
- “Using my Babbel every day, very little, but I’m learning very slowly.” (Tim Allen, [12:57])
Notable Quotes
- Tim Allen: "Language learning is the oldest software known to man, so it's not going anywhere." ([02:57])
- Tim Allen: “Short of a neural implant, people are going to always be learning languages.” ([03:54])
- Tim Allen: “People want to know they'll have a real lesson plan, that they have really the transmission of the language in a way that's going to adapt to them.” ([05:36])
- Tim Stenovec: "That's a lot less expensive than competitors such as Duolingo, which is, you know, that plus some, I think per year." ([09:14])
- Tim Allen: “Now our specialty is language learning... all of our linguistics, all of our teachers, all of the human centric pieces…” ([10:18])
- Tim Allen: “We do use AI, but we use it with the human centric piece...” ([12:17])
Key Timestamps for Important Segments
- 01:46 – Apple’s translation feature and implications for language learning
- 02:37 – Interview begins with Tim Allen (Babbel CEO)
- 02:57 – Allen on the enduring need for language learning
- 03:54 – The limits of wearables and real-time translation
- 04:59 – AI’s role in app development and competition
- 05:36 – Importance of pedagogy and trusted guidance
- 06:47 – Babbel’s recent growth and user metrics
- 08:54 – Pricing details: lifetime vs. subscription
- 10:18 – Babbel’s specialty and focus versus competitors
- 11:27 – AI, data, and investment at Babbel
- 12:17 – AI and human collaboration in content creation
- 12:57 – CEO Tim Allen’s personal language learning journey
Tone & Speaker Dynamics
- The conversation is lively, future-focused, and pragmatic.
- Tim Allen is optimistic, measured, and emphasizes a hybrid approach—valuing both human expertise and AI enhancement.
- Carol Massar and Tim Stenovec bring industry curiosity and challenge assumptions about the disruptive threat of AI to established practices.
Summary:
Babbel’s CEO views generative AI and real-time translation tools as market expanders, not existential threats. Babbel leverages AI to personalize and accelerate learning while doubling down on pedagogical rigor and human-centric design, continuously attracting both individuals and enterprises. True language acquisition, they argue, remains an essential human endeavor—something even the most groundbreaking technology complements, but does not replace.